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GUZZINO v. FELTERMAN
191 F.3d 588 (1999)
Leonard G. GUZZINO, et al., Plaintiffs,
v.
Jody M. FELTERMAN, et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Cross-Claimant-Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Cross-Defendant-Appellee.
Gary Massicot, Plaintiff-Appellee,
v.
Jody M. Felterman, et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Cross-Claimant-Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Cross-Defendant-Appellee.
Glenda Rice, individually and as administrator for her two minor children; Rice Children Trust, on behalf of Rena Deslatte; Rice Electronics, Inc; Rice Electronics of Texas, Inc; David P. Rice, individually and as administrator for his two minor children, Plaintiffs-Appellees,
v.
Jody M. Felterman, et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Cross-Claimant-Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Cross-Defendant-Appellee.
C. Keith Viscardis; Phyllis Viscardis; Dennis Businelle, Plaintiffs-Appellees,
v.
Jody M. Felterman, et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Cross-Claimant-Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Cross-Defendant-Appellee.
Shanna Hebert; Kevin Hebert; Raymond Verrett; Mrs. Raymond Verrett; Clarence E. Lassiter; Mrs. Clarence E. Lassiter; Ivy St. Romain, Jr.; E.J. Mason; Mrs. E.J. Mason; Rick Mason; Joyce B. Lasseigne; Jerry M. Lipari; Mrs. Jerry M. Lipari; Lucy Lipari; Collins Pellegrin, Jr.; Mrs. Collins Pellegrin, Jr.; Crystal Pellegrin, individually and on behalf of Stephanie Suire; Troy Hatch; Mrs. Troy Hatch; Robert N. Hughes; Mrs. Robert N. Hughes; Penny Hebert; Patrick Hebert; Gordon Billiot; Mrs. Gordon Billiot; Sidney P. Hebert, Sr.; Mrs. Sidney P. Hebert, Sr.; Jerry Jackson; Audrey Jackson; Forrest Callais; Mrs. Forrest Callais; Ronald Fromenthal; Mrs. Ronald Fromenthal; Sterling Hebert; Mrs. Sterling Hebert; Erroll J. Theriot; Helen Theriot; Newton Verrett; Mrs. Newton Verrett; Alex Giroir; Mrs. Alex Giroir; Clarence P. Hebert, Sr.; Mrs. Clarence P. Hebert, Sr.; Willow Jean Ganaway; Peter Vandenaardweg; Gerald Crappell; Mrs. Gerald Crappell; Opal Joubert, individually and as Testamentary Executrix on behalf of Randy Joubert, Sr. Estate, Plaintiffs-Appellees,
v.
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Cross-Claimant-Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Defendant-Cross-Defendant Appellee.
Levy B. Roy; Iris Roy, Plaintiffs-Appellees,
v.
ABC Insurance Co., et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Third-Party Defendant-Appellee.
Peter Vandenaardweg, Plaintiff-Appellee,
v.
Dean Witter Reynolds, Inc., et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Cross-Claimant-Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Cross-Defendant-Appellee.
Rudy Sparks; Diane Sparks, Plaintiffs-Appellees,
v.
ABC Insurance Co., et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Third-Party Defendant-Appellee.
Travis Roy; Tiffany Roy, Plaintiffs-Appellees,
v.
Dean Witter Discover and Co., formerly known as Dean Witter Reynolds, Inc., et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Third-Party Defendant-Appellee.
Robert Adams, III, Plaintiff-Appellee,
v.
Dean Witter Discover and Co., formerly known as Dean Witter Reynolds, Inc., et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Third-Party Defendant-Appellee.
Jerry F. Adams, Plaintiff-Appellee,
v.
Dean Witter Discover and Co., et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Third-Party Defendant-Appellee.
Gerald Crappell; Penny Crappell, Plaintiffs-Appellees,
v.
Dean Witter Reynolds, Inc., et al, Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Cross-Claimant-Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Cross-Defendant-Appellee.
D. Lee Felterman; Jan B. Felterman, Plaintiffs-Appellees,
v.
Dean Witter Discover and Co., formerly known as Dean Witter Reynolds, Inc., et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Third-Party Defendant-Appellee.
Daniel C. Felterman; Linda B. Felterman, Plaintiffs-Appellees,
v.
Dean Witter Discover and Co., formerly known as Dean Witter Reynolds, Inc., et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Third-Party Defendant-Appellee.
Marijeanne Christie, et al., Plaintiffs,
Robert S. Robertson, Plaintiff-Appellee,
v.
Jody M. Felterman, et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Cross-Claimant-Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Cross-Defendant-Appellee.
Murray Duval; Anna Jean Duval, Plaintiffs-Appellees,
v.
Jody M. Felterman, et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Cross-Claimant-Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Cross-Defendant-Appellee.
Sebastian J. Cardinale, Plaintiff-Appellee,
v.
Jody M. Felterman, et al., Defendants,
Dean M. Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Cross-Claimant-Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Cross-Defendant-Appellee.
Jeffrey Cardinale, Plaintiff-Appellee,
v.
Dean Witter Reynolds, Inc., et al., Defendants,
Dean Witter Reynolds, Inc., Defendant-Third-Party Plaintiff Cross-Claimant-Appellant,
v.
Peter J. Lipari; Patterson State Bank; Whitney Holding Corp., Third-Party Defendants-Appellees, and
Jody M. Felterman, Cross-Defendant-Appellee.
No. 98-30222.
United States Court of Appeals, Fifth Circuit.
September 30, 1999.
Bob F. Wright, Carla M. Perron, Domengeaux, Wright, Moroux & Roy, Lafayette, LA, for Massicot, C. Keith and Phyllis Viscardis, Businelle, Shanna and Kevin Hebert, Verrett, Mr. and Mrs. Clarence Lassiter, St. Romain, Mr. and Mrs. E.J. Mason, Rick Mason, Lasseigne, Mr. and Mrs. Jerry Lipari, Lucy Lipari, Mr. and Mrs. Collins Pellegrin, Jr., Crystal Pellegrin, Mr. and Mrs. Troy Hatch, Mr. and Mrs. Robert Hughes, Penny and Patrick Hebert, Mr. and Mrs. Gordon Billiot, Mr. and Mrs. Sidney Hebert, Jerry and Audrey Jackson, Mr. and Mrs. Forrest Callais, Mr. and Mrs. Ronald Fromenthal, Mr. and Mrs. Sterling Hebert, Errol and Helen Theriot, Mr. and Mrs. Newton Verrett, Mr. and Mrs. Alex Giroir, Mr. and Mrs. Clarence Hebert, Sr., Ganaway, Robertson, Murray and Anna Jean Duval, Vandenaardweg, Gerald and Penny Crappell, Sebastian and Jeffrey Cardinale and Joubert.
Victor James Versaggi, Lafayette, LA, for Daniel, Linda D., Lee and Jan Felterman, Adams, Travis and Tiffany Roy, Jerry Adams, Iris Roy, Judy and Diane Sparks and Levy B. Roy.
Scott D. Levy, Houston, TX, for Glenda Rice, Rice Children Trust, Rice Electronics, Inc., Rice Electronics of Texas, Inc. and David Rice.
Cliffe E. Laborde, III, Robert Edwin Torian, Laborde & Neuner, Lafayette, LA, Clave E. Gill, Patricia A. Bollman, Gill & Shinn, Covington, LA, for Dean Witter Reynolds, Inc.
Robert J. Burvant, Margaret Mary Sledge, Clare P. Hunter, Elizabeth M. Mayeaux, King, LeBlanc & Bland, New Orleans, LA, for Peter J. Lipari and Patterson State Bank.
W. Gerald Gaudet, Bradley Joseph Haight, Voorhies & Labbe, Lafayette, LA, for Jody M. Felterman.
Gary J. Russo, Perret, Doise, Daigle, Lonfman, Russo & Zaunbrecher, Lafayette, LA, for Whitney Holding Corp.
Before POLITZ and JOLLY, Circuit Judges, and BARBIER, District Judge.*
POLITZ, Circuit Judge: Dean Witter Reynolds, Inc. appeals the trial court's remand order issued under the discretionary provision of 28 U.S.C. § 1367(c). Plaintiffs counter that the court lacks jurisdiction to hear the appeal and, joined by the third-party defendants, contend that the trial court acted within its discretion in ordering the remand. For the reasons assigned, we deny plaintiffs' motion to dismiss the appeal, affirm in part, and vacate and remand in part. BACKGROUNDThis case arose from the illegal conduct of a Dean Witter stockbroker, Jody M. Felterman. Felterman conducted a Ponzi1 scheme designed to bilk investors of their money and, when his activities were discovered, pleaded guilty to money laundering and wire fraud. The many investors — the plaintiffs in this litigation — brought suit in Louisiana state court against Felterman and Dean Witter. Dean Witter filed a third-party complaint against two banks in which Felterman maintained accounts and the president and chief executive officer of one of these banks.2 Plaintiffs were grouped according to the names of their attorneys: the Baldwin and Haspel plaintiffs; the Stansbury plaintiffs; the Wright plaintiffs; the Versaggi plaintiffs; and the Rice plaintiffs. Dean Witter successfully removed all cases to federal court on the basis of federal question jurisdiction. Plaintiffs' complaints, other than those filed by the Stansbury plaintiffs, alleged RICO3 and federal securities violations. The actions were consolidated and the court scheduled nine4 plaintiffs for trial. After active litigation for approximately two years, the court granted Dean Witter's motions to dismiss or motions for summary judgment on all federal and some state claims of the nine plaintiffs set for trial. Anticipating the inevitable, all remaining plaintiffs, with the exception of five Versaggi plaintiffs, voluntarily dismissed their federal claims against Dean Witter. Plaintiffs also abandoned their claims against Felterman, who, unlike
Dean Witter, had not asked the court to enter judgment in his favor on any of plaintiffs' claims.5 As a result, no federal claims remained pending, other than those by the Versaggi plaintiffs, and plaintiffs moved the trial court to remand the case to state court. Although the trial court initially declined to do so, it subsequently reconsidered and remanded the case to state court. From this ruling, Dean Witter appeals. ANALYSISAt the threshold we pause to consider the challenge to our appellate jurisdiction. Our pause need only be brief. Plaintiffs suggest that the trial court should have remanded under the authority of 28 U.S.C. § 1447(c), an order for which appellate review is precluded by 28 U.S.C. § 1447(d). They further contend that a decision to remand under 28 U.S.C. § 1367(c) is reviewable only by a petition for writ of mandamus. Both propositions are foreclosed by our jurisprudence.6 We have jurisdiction to review this appeal.
* District Judge of the Eastern District of Louisiana, sitting by designation. 1. The term was coined from the last name of the swindler in Cunningham v. Brown,265 U.S. 1, 44 S.Ct. 424, 68 L.Ed. 873 (1924). 2. The third-party defendants are: First National Bank in St. Mary Parish, merged into Whitney National Bank; Patterson State Bank; and President and Chief Executive Officer of Patterson State Bank, Peter J. Lipari. 3. Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1961 et seq. 4. There exists some confusion as to whether the correct number is nine or seven. As the discrepancy does not impact our analysis of the issues, we will simply assume (as the parties do) that the correct number is nine. 5. It appears that Felterman may now be impecunius. 6. Burks v. Amerada Hess Corp.,8 F.3d 301 (5th Cir.1993), abrogated on other grounds by Giles v. NYLCare Health Plans, Inc.,172 F.3d 332 (5th Cir.1999); Doddy v. Oxy USA, Inc.,101 F.3d 448 (5th Cir.1996); Eastus v. Blue Bell Creameries, L.P.,97 F.3d 100 (5th Cir. 1996) (citing Quackenbush v. Allstate Ins. Co.,517 U.S. 706, 116 S.Ct. 1712, 135 L.Ed.2d 1 (1996)). 7. 28 U.S.C. § 1367(a), (c). 9. Id. at 726, 86 S.Ct. 1130 (footnotes and citations omitted). 10. See Carnegie-Mellon Univ. v. Cohill,484 U.S. 343, 108 S.Ct. 614, 98 L.Ed.2d 720 (1988). 11. See Parker & Parsley Petroleum Co. v. Dresser Indus.,972 F.2d 580 (5th Cir.1992). 13. Robertson v. The Neuromedical Center,161 F.3d 292 (5th Cir.1998), cert. denied, ___ U.S. ___, 119 S.Ct. 1575, 143 L.Ed.2d 671 (1999).
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